Great News for Retirees: 3 Big Changes Are Coming to Social Security in 2023
Inflation has taken a heavy toll on the U.S. economy this year. More than one-third of adults have dipped into their savings to cover living expenses, and the personal savings rate (savings as a percentage of disposable income) dropped to a 14-year low of 3% in June, according to the Bureau of Economic Analysis.
Inflation has made life especially difficult for retirees who depend on Social Security. Medicare Part B premiums jumped 14.5% in 2022, the fourth-largest increase in the last two decades, and prices across several other spending categories -- food, energy commodities (e.g., gas), and energy services (e.g., electricity) -- rose at a double-digit pace in August.
Based on that data, the 5.9% cost-of-living adjustment (COLA) applied to Social Security benefits in 2022 fell woefully short. Fortunately, three big changes in 2023 could help retirees on Social Security fight inflation.
Source Fool.com
